Saral Jeevan Bima Term Insurance Policy – Features and Benefits

Saral Jeevan Bima Standard Term Insurance Policy – Features and BenefitsSaral Jeevan Bima Standard Term Insurance Policy – Features and Benefits

IRDA has issued guidelines to Life insurance companies now to come up with a simple term insurance policy with name Saral Jeevan Bima. This Saral Jeevan Bima term insurance policy is targeted to low income group. Currently there are several restrictions for low income group to get term insurance plans, hence IRDA has taken this wise decision. In this article, we would provide Saral Jeevan Bima term insurance policy, its features and benefits.

Also Read: LIC Tech Term Insurance Plan – Should you opt?

Need for a standard term insurance plan

Currently, most of the term plans have minimum of Rs 25 lakhs sum assured. It is difficult for low income group to take term insurance plans which are currently with high premiums. Like Arogya Sanjeevani, standard health insurance plan, IRDA has come up with recommendations and indicated that Life insurance companies need to come up with standard term insurance plans now.

Saral Jeevan Bima standard term insurance plan – Features and Benefits

IRDA has asked all life insurance companies to come up with standard term insurance plans by 31 December, 2020. Means these would be available from January 1, 2021 to customers. Here are the feature and benefits of this term insurance plan.

1) Saral Jeevan Bima insurance plan is non linked, non participating, pure term insurance plan which provides lump sum payment to the nominee in case of unfortunate death of the life insured during the policy term.

2) This standard term insurance plan would have a name “Saral Jeevan Bima” along with insurance company name. e.g. LIC might have “LIC Saral Jeevan Bima Policy”.

3) This term insurance plan is targeted for low income group.

4) Any individual in the age group of 18 to 65 years of age can take this standard term insurance plan.

5) Saral Jeevam Bima term plan would have 4 to 40 years policy term.

6) This term plan would have maximum maturity age of 70 years.

7) This is a pure term insurance plan with no maturity benefit.

8) Sum assured in this Saral Jeevan Bima would be between Rs 5 Lakhs to Rs 25 Lakhs. This standard term plan would be available in multiples of Rs 50,000 between this range.

9) This standard term plan would have 45 days waiting period. During this waiting period, policy covers only death due to accident.

10) This term policy would have only one exclusion clause which would be “suicide”.

11) This term policy would come with 3 premium payment options i.e. regular premium payment (through the policy), single premium / lumpsum premium and limited premium payment options.

12) In this term insurance plan, there would not be any riders, options and variants.

13) This term plan would be offered to individuals without any restrictions on gender, place of residence, travel, occupation or educational qualification.

14) These standard features would be same for Saral Jeevan Bima policies issued by all life insurance companies except for premiums.

What is the death benefit payable in this term insurance plan?

Death benefit is computed based on premium payment options.

1) Death benefit for regular premium options would be higher of:

  • 10 times of annualized premium
  • 105% of the premiums paid as on the date of the death
  • Absolute sum assured to be paid on death.

2) Death benefit for single premium would be higher of:

  • 125% of single premium
  • Absolute sum assured to be paid on death.

Also Read: Best Term Insurance Plans in India

Whom this Saral Jeevan Bima term insurance plan would benefit?

This would benefit to any of the following individuals:

1) To the low income group individuals who have not taken term plans till now due to high premiums.

2) This would benefit for beginners who want to take term plan for small sum assured now and want to increase their overall sum assured through additional term plans later.

If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.

Suresh KP

Leave a Reply

Your email address will not be published. Required fields are marked *